KAILASH BIBARL SHARMA Vs. STATE OF BIHAR

JUDGEMENT

(1.) -in this batch of writ petitions the petitioners have challenge their removal from the office of Chairman/vice Chairman/member of Various Authorities/corporations/boards which have been constituted under various Acts, or have been incorporated undar the provisions of the companies Act. Different statutory provisions fall for consideration in this batch of writ petitions, and I shall, therefore, deal with the cases separately so that the relevant statutory provisions are not missed. Broadly speaking the cases can be classified under two heads, firstly those which relate to authorities or Boards constituted under a statute, and secondly those which have been incorporated under the Companies Act and are really Government companies, by whatever name called.

(2.) I shall first take UP the three writ petititions wherein the removal of the Chairman of three Regional Development Authorities is challenged. Under the Bihar Regional Development Authority Act, 1981, the State Govt. has been empowered to constitute an authority to be called as Regional development Authority bearing the name of that region. C. W. J. C. Nos. 3385. 3338 and 3024 of 1990. In the instant case, we are concerned with the Chairman of the Patna, darbhanga and Muzaffarpur Regional Development Authorities. C. W. J. C. No. 3385 of 1990 has been filed by Shri Aquil Haider, who was nominated as chairman of the Patna Regional Development Authority by notification annezure-1 dated 5-10-1989. The case of the petitioner is that he was earlier a member of the Legislative Assembly belonging to the Congress I Party. By notification Annexure-1 dated 5-10-1989 the State Government in exercise of its powers under Section 3 (3) (a. of the Act nominated the petitioner as the chairman of the Patna Regional Development Authority According to the petitioner a Chairman nominated under the Act holds office for the statutory term of three years. His term would have therefore expired in normal course on 4-10-1992. In February 1990 elections to the Legislative Assembly of the state took place and the Janta Dal Party came in power and formed the government replacing the previous Congress I Government. The Chief minister of the State repeatedly announced his intention publicly to remove all Chairman of various Corporations, Boards eta. obviously with a view to remove his political opponents and to provide offices to the members of the janta Dal Party Thereafter on 11-5-1990 a notification, Annexure-2, was issued under sub-section (7) of Section 3 of the Act whereby the petitioner was removed from the office of the Chairman of the Authority with immediate effect. By a separate notification of the same date Annexure-3, the Minuter town Development Department was nominated as the Chairman of the authority in his place till further orders. The action of the Government was wholly illegal in as much as sub-section (7) o Section 3 of the Act has been held to be ultra vires by the High Court, so far as it is made applicable to the office of the Chairman. It was submitted that if sun-section (7) of section 3 was not controlled by Section 5 of the Act it was arbitrary, and therefore, in breach of Article 14 of the Constitution of India. The action of the Government was a colourable exercise of power motivated by political expedience. On such grounds the writ petition was filed praying that Annexure-3 and 4 be quashed, and the respondents be directed not to remove the petitioner from the office of Chairman of Patna Regional Development authority till 4-10-1992, when the petitioner will complete his statutory term of three years. A supplementary affidavit has also been filed in which it has been urged that the power wag exercised contrary to the provisions of the rules of Executive Business framed under Article 166 of the Constitution of india However, no argument was addressed before us about the illegality of the action on the ground that it was in breach of the Rules of Executive business,

(3.) C. W. J. C. No. 3338/90 has been filed by Shri Brijnath Jha, who claims to be a social worker activly associated with the development work and had been nominated as the Chairman of the Dharbhanga Industrial development Authority from the year 1980 to 1984. According to the petitioner he was appointed Chairman of the Darbhanga Regional Development authority by notification dated 20th December, 1989 (Annexure-1). The petitioner was given the same pay and allowances, including house allowance, as are permissible to State Ministers. Despite the fact that there was nothing against the functioning of the petitioner as Chairman of the Authority, it appears that the Chief Minister, respondent No. 4, desired that all non-official chairman and Vice-chairman of the several Boards or Corporations under the Bureau of Public Enterprises should be removed and instead the departmental Secretaries may take over charge as Chairman. This desire of the Chief Minister was communicated through his Principal Secretary to the Chairman, Bureau of Public Enterprises on 11-4-1990. On the same day the Chairman of the Bureau of Public Enterprises put up a note to the Chief secretary that all non-official Chairman and Vice-chairman may be removed with immediate effect and the concerned Secretaries of the department may take over charge after approval of the Chief Minister was obtained. The concerned departments may obtain in the various files the orders of the ministers concerned as also the formal orders of the Chief Minister. The proposal was placed before the Chief Secretary who directed that the concerned departments may proceed in the matter by showing the order of the chief Minister and obtaining the orders of the concerned Minister, and that it was not necessary to trouable the Chief Minister in each case. The proposal was approved by the Chief Minister. Annexure-2 contains the notings in the file upon which the petitioner has relied in support of the aforesaid facts. It is contended by the petitioner that such action was arbitrary and without jurisdiction as it became evident that all Chairman of the Boards/authorities who belonged to the Congress I Party were to be removed so as to accommodate members of the Janta Dal Party. The order was therefore mala fide and a colourable exercise of power. The aotion contemplated did not provide for observance of the principles of natural justice. In these circumstances the petitioner filed the writ petition on 21-5-1990 impugning the circular Annexure-2 dated 21-4-1990. Subsequently the petitioner filed a supplementary petition being addition/amendment to the writ petition on 2-8-1990 and stated that a notification has been issued on 4th May, 1990 removing the petitioner from the office of chairman, Darbangha Regional Development Authority with immediate effect. A copy of the notification was annexed as Annexure-5 to the writ petition and the petitioner prayed that in addition to Annexure-2, Annexure-S may also be quashed. By another supplementary affidavit filed on 11-10-1991 the petitioner brought to the notice of this court that a notification dated 9-9-1991 had been issued appointing another person as Chairman of the darbhanga Regional Development Authority. It was submitted that since the removal pursuant to Annexure-2 itself was illegal, Annexure-4 was also illegal.